"I don't think he should be part of our president's inner circle, making decisions that affect every single one of us," Palin, a Fox News contributor, told host Bill O'Reilly. "I think he's given our president some very bad advice on a whole realm of different areas."
"There needs to be a replacement there," she added.
O'Reilly asked Palin why she separated Emanuel's comments from those made by radio host Rush Limbaugh when he used the word "retard" repeatedly when talking about the controversy.
As she has done before when asked about what critics are calling a double-standard, she said that Limbaugh's comments were satire.
"He was using satire, using the 'r-word,' so he could bring to light what is was that Rahm Emanuel was calling other people," she said.
Palin was also asked about an episode of "Family Guy" on Fox television which features a mentally challenged character who says her mother is the former governor of Alaska. (You can watch a clip of it here.) Earlier today, Palin posted a note on her Facebook page which called the episode a "kick in the gut."
"This world is full of cruel, cold-hearted people who would do such a thing," Palin told O'Reilly, but did not add to the comments by her and her daughter Bristol in the Facebook note.
Later in the interview, she made an impassioned defense for her work on behalf of special needs children.
"When I gave my vice presidential nomination speech at the GOP convention, I promised the special needs community that they would have a friend and an advocate in the White House," she said. "And just because John McCain and I did not win, that did not take away my passion for helping those who want to reach out and ask me to do what I can to allow this country, this world to be more welcoming place for all innocent people, all special needs children. I am going to keep pursuing that in our country until we are a more tolerant, compassionate, welcoming place for the innocents."